The man who claimed to be disrupting the backyard housing industry — securing financing, permits and building granny flats across San Diego County, before collecting millions of dollars without doing the work — is now seeking federal protection from his many creditors.
Jose Frausto, the founder and chief executive of Multitaskr and many of its satellite companies, has filed for personal bankruptcy months after the company was sued by scores of disgruntled clients.
It is at least the seventh time Frausto has gone to court to protect his assets from people and companies to whom he owed money, according to U.S. Bankruptcy Court records. The cases date back to 2010, federal documents show.
According to his most recent filing, Frausto claims to have between 100 and 199 creditors who combined are owed up to $10 million. He further disclosed that he lives in a $2 million house in Eastlake but holds personal assets worth between $50,000 and $100,000.
The bankruptcy filing also notes that Frausto sold his Maserati sports car, a Louis Vuitton handbag, a Gucci wallet and other designer goods. The house where he lives is owned by a trust in another person’s name, county property records show.
The Chapter 7 filing, which was submitted to San Diego federal bankruptcy court in March, already has led to two online hearings. In both proceedings, dozens of Multitaskr clients were able to listen in and rebut Frausto’s statements or claims.
The bankruptcy declaration also may prove to be useful to state and federal investigators who are reviewing Frausto’s and Multitaskr’s business practices and examining the public disclosures that accompany any bankruptcy proceeding.
A man answering the phone at the number Frausto listed in bankruptcy filings denied he was Frausto when contacted by The San Diego Union-Tribune. The attorney representing the Multitaskr founder did not respond to a request for comment.
Frauso established Multitaskr in 2020 and quickly lined up scores of homeowners who wanted accessory dwelling units, or ADUs, built in their backyards. The concept was to provide one-stop service for homeowners, from planning to development.
The business model appeared solid on paper and in the many brochures and videos the company pushed out, promising to take control of all aspects of what can be a difficult home-construction process.
But after accepting millions of dollars in advance payments from property owners, Multitaskr failed to do the work its agents had promised, dozens of plaintiffs said in a series of lawsuits filed in San Diego Superior Court.
“Even though the plaintiff entered into the written contract and verbal agreement with Multitaskr in December of 2022, no work has been performed by Multitaskr,” a lawsuit filed last October says.
The litigation also accuses Multitaskr of colluding with lenders to approve loans for the work before the jobs were completed — a practice that is not legal under state law.
“Despite not performing any work, each of the lenders have improperly disbursed the entirety of the loan amounts directly to Multitaskr without performing necessary and required due diligence,” the civil complaint says.
At least 15 other lawsuits are pending against Multitaskr, Frausto and other defendants accused of failing to meet contractual terms, court records show.
Joshua Cawthorn, a Hillcrest property owner who hired Multitaskr to build an ADU in his backyard, said he was disappointed to find out that Frausto was seeking federal help protecting his assets while so many Multitaskr customers have received nothing for their money.
Cawthorn said he attended two online hearings held so far — one in April and the other last month. He said it sounded to him like Frausto had been coached on what to tell the bankruptcy judge.
“He has clearly been counseled by his counsel to say a lot of ‘I don’t knows’ and ‘I’m sorry this happened to you,’” Cawthorn said. “I don’t know what we (creditors) are all looking for from him, but contrition is a small part of it.”
The Hillcrest property owner, who planned to build two ADUs in his backyard, said he took out a total of six separate loans to finance the construction. But after two-plus years, he has nothing to show for his investment but a serious hit to his credit rating.
“The best thing that could happen is the credit bureaus stop reporting that we are not making our loan payments,” Cawthorn said this week. “I don’t think any money will come back. I wish my credit would stop being so violated so I could move on.”
Cawthorn said he had no idea Frausto was seeking federal protection from his creditors — or that he had six prior bankruptcies.
“I can’t believe anyone has trusted him with money,” he said. “It makes me feel bad that I did too.”
Frausto, 42, is facing more than civil and bankruptcy court litigation.
According to multiple plaintiffs in the civil cases, state and federal investigators have been asking questions about the company’s practices. One plaintiff confirmed that the state investigator in charge of the investigation attended the virtual proceeding.
State and federal officials have declined to comment on the case.
Nonetheless, records show the California Secretary of State’s Office formally suspended Multitaskr’s corporate status on Feb. 3.
Meanwhile, the Contractors State Licensing Board issued what’s called an accusation against Frausto and other Multitaskr officials in April, claiming they violated no fewer than 19 separate state contracting laws.
In one case, the accusation states, Frausto collected more than $424,000 from a Poway homeowner and failed to build the ADUs as promised.
For a few months, the company paid the agreed-upon $3,500 monthly fee for lost rental income — but the payments ceased inexplicably in 2023, and company officials would no longer respond to calls or emails, the accusation says.
“Respondent Frausto continually made excuses for the monthly rental-payment stoppage, claiming that he would talk to his finance department and legal team about it,” the state document says.
“Eventually, Respondent Frausto and Respondent Multitaskr’s staff stopped communicating with the homeowners entirely.”
The decision was upheld last month and is expected to become effective on Monday.
Originally Published: June 13, 2025 at 5:33 AM PDT
